Use of Nudge to Change Consumer Behavior The chapter discusses ways that organizations can use “nudges” to change consumer behavior.
Critics refer to them as benevolent paternalism because they argue they force people to “eat their vegetables” by restricting the freedom to choose. For example, several cities including New York and Philadelphia have tried (unsuccessfully thus far) to ban the sales of extra large portions of sugary drinks. What’s your take on these efforts – should local, state or federal governments be in the business of nudging citizens to be healthier? Behavioral economics posits that all human behaviour, including in business, is shaped by irrational and unconscious influences, such as bias, social pressure and cognitive inertia.